📋 Tender Overview
COUNTRY: India
STATUS: Proposed
AREA OF OPERATION: Transport Infrastructure
TYPE: Non-Sovereign
Project Context: India’s road transport presently accounts for 12% of India’s energy-related CO2 emissions and is a key contributor to urban air pollution. As India seeks to meet the increasing demand for the transport of goods, energy use and CO2 emissions from road transport could double by 2050. The steadily expanding truck fleet is going to increase and therefore it is necessary to invest and promote clean transport infrastructure1. The Project’s goal is to finance sustainable commercial vehicles thus creating sustainable transport infrastructure.
Project Description: Shriram Finance Limited is one of the largest non-bank finance companies in India registered with Reserve Bank of India (RBI). SFL has well-diversified business segments comprising financing of commercial vehicles, construction equipment, agriculture vehicles, micro, small and medium-sized enterprises (MSME) loans etc. It holds prominent position in commercial vehicle financing segment in India. NDB’s loan will provide longer-term funding to SFL to support and expand SFL’s lending for acquisition of energy efficient sustainable vehicles for individual driver turned owners, first time borrowers, micro, small and medium-sized enterprises (MSMEs) including small road fleet operators having 4-5 vehicles engaged in transport and logistics in India.
Project Objective: The Project objective is to increase the penetration of low carbon transportation vehicles in India by financing sustainable commercial vehicles.
